How To Fully Liquidate the PreEncumbrance (Doc ID 872937.1)

Goal

The goal of this document is to help the User ensure that Requisitions are fully liquidated under unusual scenarios.

Scenario 1.  How can pre-encumbrances be liquidated when the Purchase Order (PO) is reduced?

Scenario 2.  Req is sourced to a PO.  The req has 1 Line/sched/distrib.  When the PO is created, the Distribution is split and charged to multiple departments.  When the PO is budget checked, the requisition is not being fully liquidated.

Scenario 1:

1. Requisition is created for Qty 10 at $10.00. Total Requisition is $100.00. Pre-encumbrance is established.

2. The Purchase Order is created from this Requisition but the quantity is reduced to 7. When the PO is budget checked, $70.00 is encumbered and $30.00 remains pre-encumbered.

How can the $30.00 be liquidated?

Scenario 2:

Requisition is created.  1 Line/Schedule and Distrib.  Qty = 1 and the Price = 500.00.

The requisition is budget checked and the appropriate pre-encumbrance is recorded.

The Req is sourced to a PO.

On the PO, the Buyers drills to the Distribution and splits the Distribution to charge to different accounts.  $300.00 is allocated to Distrib 1.  And $200.00 is allocated to Distrib 2.

The PO is budget checked.

When the Budget is reviewed, $500.00 is now encumbered but there is $200.00 remaining pre-encumbered.

In Scenario 1:  The User can use the Finalize button on the Purchase Order (PO), Header.  This will allow the PO to be reduced to 7, encumber $70.00 while also fully liquidating the remaining $30.00 pre-encumbrance.  The $30.00 will be returned to the Available Budget.

From PeopleBooks on Partial / Final Liquidation. See file Partial and Final Liquidation.doc.

In Scenario 2: The reason that the pre-encumbrance was not fully liquidated is because the added Distribution cannot reference the Requisition. If the Requisition is not referenced on the PO Distrib row, the system sees this as an independent line, an reversals are not created.  The fianlize can be done at the PO Distribution level or at the PO Header level.

Solution